Households across the UK could soon see a welcome reduction in their energy bills under a new Government-backed scheme.
With plans to expand and upgrade the electricity grid, certain areas may qualify for an annual £250 discount—potentially saving residents thousands over the next decade.
The initiative, part of the upcoming Planning and Infrastructure Bill, will benefit those within 500 metres of new or upgraded electricity transmission infrastructure.
Eligible households could save up to £2,500 over the next decade through the scheme and communities directly supporting nationally critical infrastructure will rightfully benefit, according to the Government.
The discount scheme comes as Britain needs to build twice as much new transmission network infrastructure by 2030 as has been constructed in the past decade.
Energy Secretary Ed Miliband stressed the need for energy independence, stating: “The only way to make Britain energy secure… is to get Britain off dependence on fossil fuel markets.”
He emphasised urgency, saying: “We need to get Britain building right now,” while ensuring local communities “meaningfully benefit” from new infrastructure.
Some households can save money on energy bills
GETTY
Several regions across the UK will benefit from the energy bill discount scheme, with specific infrastructure projects already identified.
The Sea Link project, connecting Suffolk to Kent, will include onshore infrastructure such as converter stations and substations. In East Anglia, the Norwich to Tilbury project will impact Norfolk, Suffolk and Essex with approximately 184km of new infrastructure.
The Grimsby to Walpole project will create a 140km electricity line between Lincolnshire and Norfolk. South Yorkshire, Derbyshire and Nottinghamshire will be affected by the Brinsworth to High Marnham Uprating scheme, which includes three new substations.
National Grid’s planned power line between Tealing and Aberdeenshire could see local communities benefitting from funding worth over £23 million.
Energy bills could be reduced in these key UK areas:
- Suffolk
- Kent
- Norfolk
- Essex
- Lincolnshire
- Norfolk
- South Yorkshire
- Derbyshire
- Nottinghamshire
Some local residents have expressed concerns about the infrastructure projects, with campaigners in Suffolk opposing plans for converter stations.
LATEST DEVELOPMENTS:
Some local residents have expressed concerns about the infrastructure projects
OCTOPUS ENERGY
Deputy Prime Minister and Housing Secretary Angela Rayner said: “It is no longer a question of whether we build the new infrastructure we need but a question of how and this must be done in lockstep with local communities.”
Alongside bill discounts, developers will ensure communities hosting transmission infrastructure benefit through funding for local projects.
The scheme aims to create enduring benefits for communities hosting vital national infrastructure. The discount scheme will be complemented by substantial funding for local projects in affected communities.
Developers will provide £200,000 worth of funding per kilometre of overhead electricity cable in the area. Additionally, £530,000 will be allocated per substation built.
These funds will be directed towards local initiatives such as sports clubs, educational programmes and leisure facilities. Developers will closely consult with eligible communities on how best to spend these funds.
Energy Secretary Ed Miliband stressed the need for energy independence
POOL
The Government expects this infrastructure to be critical for economic growth, potentially unlocking £40 billion a year of mainly private investment. New jobs will be created across the country as part of this initiative.
Sir Keir Starmer has acknowledged that overground pylons near homes are a necessary “trade-off” for reducing energy costs, stating: “If we want cheaper electricity, we need new pylons overground otherwise the burden on taxpayers is too much.”
National Grid CEO John Pettigrew emphasized the importance of community benefits, saying: “It is right that communities see enduring, tangible benefits for hosting transmission infrastructure.”
However, concerns have been raised about fairness in Government support, with the End Fuel Poverty Coalition warning that towns just outside the 500-metre zone could be disadvantaged.
